GTBank drags HiTV boss to court over N9.5bn debt

In a bid to recover a debt of N9.5 billion, Guaranty Trust Bank Plc has sued the Managing Director/Chief Executive Officer of HI Media Limited (formerly known as HITV Limited), Oluwatoyin Subair, at a Lagos High Court.

According to the statement of claim filed before the court by a Lagos lawyer, Chief Ajibola Aribisala (SAN) on behalf of Guaranty Trust Bank, it was alleged that as at January 31, 2012, HI Media Limited was indebted to the bank to the tune of N9,517,093,240.97, being the balance of the principal sum plus interest on the loan facilities granted the company by the bank.

The bank between August 23, 2007 and August 23, 2010, based on letters of offer and acceptance granted various loans, both in local and foreign currencies totalling about six billion naira to Hi Media Ltd.

The loans were acquired to provide guarantee for the purchase of additional TV content for the company’s sports channel to broadcast English Premier League, Champions League, Carling Cup, English FA Cup and UEFA games.

Part of the loan was also meant to finance the working capital and operational expenses such as establishment for reality show and to be used for the payment of services rendered by MTN, ETISALAT and other sponsors for advertisement to be shown during these foreign matches.

In furtherance of the acceptance of the aforementioned facilities, the company forwarded to the bank, its board of director’s resolution accepting the loan facilities.

The aforesaid credit facilities granted by the bank were personally guaranteed by Oluwatoyin Subair in a duly executed personal guarantee and indemnity while Kola Aluko, a director of HI Media, also executed a separate personal guarantee and indemnity of the said loan facilities.

The defendant agreed that the guarantee shall extend to cover death, bankruptcy or liquidation of the company and all sums which would have been paid to the bank by the company if the events had occurred, notwithstanding such death, bankruptcy or liquidation of the company, all monies unpaid.

Consequently, in accordance with clause 16 of the said personal guarantee and indemnity the claimant through one of its officers, issued a certificate certifying that the company is indebted to the bank in the sum of N9,517,093,240.97 as at January 31, 2012 and that interest continues to accrue on same at the bank’s lending rate